The Mortgage Protection Plans

You can bet as long as you have a mortgage on your home your mortgagee is going to protect its interest by requiring you to carry insurance to pay for repairing damage caused by fire, etc. - and you're required to obtain it.

But is your home mortgage completely covered? If something should happen to you, would your spouse have to worry about making mortgage payments, or be faced with the decision of selling the home for money to make ends meet?

We have a number of mortgage protection plans designed to eliminate these worries by providing cash to pay off your mortgage balance, or to continue monthly payments.

MORTGAGE CANCELLATION
Decreasing term Mortgage Cancellation Life insurance may be ideal for your situation. You simply match the "term" and "amount" of decreasing term Life insurance to the length and balance of your mortgage. Decreasing term Life insurance provides you with maximum protection when your mortgage obligation is the greatest. And since the insurance protection decreases as your mortgage balance decreases, it's very affordable.

MORTGAGE PROTECTION
Or you may prefer one of our permanent Life insurance plans, which feature these benefits:

• Death Benefit income tax-free to your beneficiary
• Cash reserves provided by the policy's cash and loan values

When you choose a permanent Life insurance plan, you're usually getting a level amount of Life insurance protection, so you simply purchase enough protection to match your mortgage balance.

One of the advantages of using permanent plans is that as your mortgage balance decreases, your level of protection remains the same. In the event of your death, your loved ones can pay off the mortgage, and own the home free and clear. The balance will allow them to live in a similar manner as when you were providing for them.

Another significant advantage of using our permanent plans is the ability to dramatically accelerate the payoff of your mortgage. This "Vanishing Mortgage Plan" can save you thousands of dollars. We will explain how this works later.

Simply put, our mortgage protection plans can leave your family a "deed instead of a debt."

The Mortgage Cancellation Joint Life Plan
It took both of your incomes to qualify for the mortgage. Have you and your spouse made arrangements to continue the mortgage payments if something should happen to either of you that would interrupt that second income?

Farmers Mortgage Joint Life Insurance Plan offers a policy specifically designed to protect your mortgage, yet flexible enough to be tailored to meet your individual needs.

Combining the Mortgage Cancellation Policy with the Joint Insured Rider will provide this. valuable protection on both you and your spouse. It's simple and affordable. You purchase the amount of decreasing term Life insurance to pay off the mortgage and elect the optional Joint Insured Rider for your spouse.

The Joint Insured Rider provides identical decreasing term insurance on your spouse. Because it's a rider attached to your policy, it costs less than a second policy would, so you get twice the amount of insurance protection at a discount.

When either you or your spouse dies, the joint insurance death benefit is paid to the surviving spouse to pay off the mortgage or continue regular mortgage payments. The surviving spouse also has the option to convert the remaining decreasing term insurance to one of our permanent plans. Should the surviving spouse, who has not attained age sixty-five (65), die within thirty-one (31) days of the other, the plan will automatically be converted in the amount set forth in the conversion provision of the Rider and a second death benefit, minus the conversion premium, will be paid.

The Vanishing Mortgage
We have explored the many ways to "protect or cancel" your mortgage should you die. But if you live, can you still "cancel your mortgage"? You bet. Farmers' "Vanishing Mortgage" program may be just the solution you're looking for.

Farmers Vanishing Mortgage program is optionally available under our Mortgage Protection Plan. This program can save you thousands of dollars on your mortgage and substantially shorten the payoff period. Just a few dollars a week can save you a substantial amount of interest on your mortgage. It's easy and relatively painless.

Setting aside an additional $1.00 each day under the Farmers Mortgage Protection Plan will enable Farmers to apply $360 to your mortgage balance each year. This could shorten your mortgage payoff period by up to five years and eliminate thousands of dollars in future interest payments!

Optional Coverages
All of our Mortgage Protection and Mortgage Cancellation plans can be enhanced to fit your own individual situation by adding any of these optional riders and benefits.

DISABILITY WAIVER OF PREMIUM
This rider keeps your policy in force if you become disabled and are unable to pay the premiums. Premiums are waived during your total disability provided the disability lasts at least six consecutive months and begins before age 60.

ACCIDENTAL DEATH BENEFIT
If you choose this benefit, and you should die due to an accident, this benefit is paid to your beneficiary in addition to your basic plan. This benefit doubles if accidental death occurs while traveling as a fare -paying customer aboard a licensed common carrier within the United States and Canada.

JOINT INSURED RIDER
Adding this rider to the Mortgage Protection Plan provides identical decreasing term Life insurance coverage to your spouse - and it costs less than a second policy.

FAMILY INSURANCE RIDER
This rider provides basic coverage on your spouse and children, plus a monthly income to you and your children if your spouse dies before age 60.

CHILDREN'S RIDER
Add this rider to your policy to provide coverage on your children age 15 days to 19 years at the date the policy is issued, plus any children you have later. The coverage lasts until each child is 22, or when you reach age 65, if earlier.

DEPOSIT FUND*
Add this rider to build a cash reserve for the future. Payments may be made into the fund at any time. Interest is compounded annually. The fund earns a competitive interest rate which is not guaranteed, but reflects up-to-date investment earnings. The interest rate will never earn less than a guaranteed minimum. Ask your Farmers Agent for the current and guaranteed rates.

* Not available in Tennessee. Retirement Premium Deposit Fund Rider in Kansas.